In a landmark case in the UK, a crypto ATM operator has received a four-year prison sentence for engaging in unregulated cryptocurrency activities. This sentencing marks a significant precedent as it is the first criminal punishment for operating unregistered crypto ATMs in the country.
Olumide Osunkoya ran a network of illegal crypto ATMs without the necessary regulatory approvals. The Financial Conduct Authority (FCA) reported that his operations took place across 28 locations from December 2021 to March 2022, managing transactions that amounted to approximately £2.6 million (about $3.14 million). Attempting to evade scrutiny, he transferred the machines to operate under a fictitious name and company, and he neglected to implement measures to prevent their use in money laundering activities.
Osunkoya’s case represents the inaugural prosecution in the UK for illegal crypto ATM operations. On September 30, he entered a guilty plea to five charges, highlighting the seriousness of the violations. His actions included forgery, as he produced false bank statements to meet a wealth verification requirement at a crypto exchange and used a false identity to establish his company. In total, he was found to be in possession of £19,540 (approximately $24,567) in cash obtained from his illegal operations.
While sentencing Osunkoya, the judge noted that his continued illegal activities demonstrated a conscious decision to defy regulatory oversight. This case arises amid a broader crackdown on unauthorized crypto ATMs, with the FCA working closely with local law enforcement agencies. The regulator’s coordinated efforts led to the removal of 30 unauthorized machines from various sites, dramatically decreasing the number of crypto ATMs in operation from 80 in 2022 to none this year.
The FCA cautions the public about the high risks associated with crypto investments, emphasizing that potential investors should be ready to lose their entire capital, given the largely unregulated nature of cryptocurrencies in the UK.
